Congratulations! You have developed a great business idea, and you are now ready to take your dreams into fruition. Being a business owner is very fulfilling, as long as you build the proper foundation for your company. Having the appropriate startup guidance determines if your company will flop or become a Fortune 500 corporation.

The startup phase of your company is critical to its future success. This phase determines whether you put the proper infrastructure – legally, financially, and in marketing terms – that will propel your business to success. The key is to develop a solid support system in place, which will assist you with startup guidance when you may need the help.

Mistake #1: Selling the wrong product

For many entrepreneurs, the greatest hurdle occurs when you realize your product or service is not one that public demands – or one where they will beat down your doors to obtain it. Therefore, in terms of startup business advice, the key is to nip this problem in the bud. Before you even open your doors, you must evaluate the strength of your product or service. The economic principles of supply and demand must come into play in your startup guidance.

Break down the analysis into smaller categories, and ask yourself the following questions:

1. Does my service or product I’m offering satisfy some need that previously went unsatisfied?
2. Does my service or product target a market already in existence in which demand is known to exceed supply?
3. 3. Can my service or product compete with already established businesses that target the same demographic I’m looking to pursue?

If you can answer ‘yes’ to one or more of the above, you’re in good shape to launch your small business startup!

Mistake #2: Becoming a “Jack-of-all-trades”

Too many businesses overextend themselves – and end up closing their doors. An illustrious example is the Chinese restaurant that sells coffee and bakes donuts, as well as sends out faxes and DHL packages.

In today’s competitive marketplace, it is critical to develop your niche market. Keep the old adage “a jack of all trades is a master of none” in mind as start up guidance, and this wisdom can serve your business well.

If your product of service is too generalized, you could overextend yourself – as well as undercapitalize upon your target audience. In too many scenarios, general companies leave their customers unsatisfied, because a seemingly over-promise is under-delivered.

Mistake #3: Underplanning for contingencies

Another common mistake that many startup business entrepreneurs make is that of underplanning. The more you plan, the better you’ll do. The power of your business plan resides in planning for the future. When you can think out the varying scenarios, and how you will appropriately react, you already set the foundation to guide your business the right direction.

Sometimes mistakes lead to unexpected benefits

Most of all, don’t forget that sometimes mistakes can lead to future successes! The donut, light bulb, and fireworks are all great examples. When something goes wrong, learn from that mistakes and move forward stronger. However, during the startup stage, the more you can empower yourself with knowledge and plans, the more likely your business will enjoy future success.